1. Field of the Invention
The present invention relates to a relative variable selection system and a selection method thereof, and more particularly to a relative variable selection system and a selection method thereof capable of selecting a relative variable effectively.
2. Description of Related Art
As global economy and stock market grow rapidly in recent years, stock price prediction becomes an important subject for both companies and individuals. As to companies, an accurate stock price prediction is applied to banks, stocks and securities, or venture capitals for a more efficient investment plan to create higher profit. As to individual investors, the accurate stock price prediction can provide a stock price trend and lower the risk of investments.
In addition to the technical analysis and basic analysis, conventional stock price predictions adopt the popular neural network prediction model, and researches indicated that the use of the neural network as the stock price prediction model has a relatively accurate prediction performance. However, the application of neural networks on the stock price prediction is very limited due to the lack of comprehensive network architectures and parameter selection mechanisms, such that the practical applicability of the stock price prediction is lowered.
Since many factors affect the stock price and correlations exist among variables, therefore selection used as a parameter of the neural network model becomes the most influential factor of a stock price and an important index of an accurate predicted stock price. For example, there is no specific method for the decision of hidden layers of interactions among inputted parameters of a recurrent neural network. If too many parameters are used in the hidden layer of a complicated model, the network will lack of the ability of mathematical induction. If too few parameters are used in the hidden layer, the network will be unable to obtain an accurate prediction result. Therefore, the design of an effective relative variable selection system and an effective selection method thereof is an important subject that demands immediate attentions and feasible solutions.